Are you unlocking the full potential of your NPS analysis? Part-II

How happy are your customers?What’s the first metric that popped into your mind? If your answer was Net Promoter Score or NPS Congratulations! you are among 80 percent of people who know how to gauge customer satisfaction but unfortunately, you are also among 90 percent of people who don’t realize that their answer is incomplete. If your answer was not NPS, don’t worry! I am here to show you all of you a better way by leveraging the power of AI.

In the previous part of this article, we took a razor close look at Net Promoter Score or NPS. This article will aim at making the pitfalls of this metric evident. The part answered the first four question listed out in the section below.

What are the ways in which NPS based analysis could be misleading?

We have said it before and we will say it again the Net Promoter Score or NPS concerns itself only with the end-result skimming over the tiny details.

In the previous section we introduced you to our friend Stan. Many customers like Stan give a Net Promoter Score that contradicts their own open-ended feedback. Breakfast and room service are both really important when it comes to the overall quality a hotel serves. Stan had a problem with both of these services, although he was a pretty happy customer who gave a high NPS.

A pure Net Promoter Score or NPS analysis would disregard the issues raised by Stan. Such ignorance can be very dangerous as it will never let you improve.

While we are on the subject of feedback. Imagine Stan posting his views on Booking.com or Tripadvisor. This my dear friend is called an epiphany. If you cannot analyze Stan’s open-ended review you are doing an inefficient job and your insights are based on incomplete information.

What are the ways in which one can fill the gaps in the insights generated by NPS?

As is evident from Stan’s example. A consumer’s review and the corresponding Net Promoter Score or NPS can describe two very different stories.

The devil is indeed in the details, in our case an analysis of a consumer’s verbatim review can reveal important areas of improvement. The only way to bridge this insights gap is a word by word analysis of open-ended feedback. Why isn’t everyone doing it then? Glad you asked!

Well, truth be told it is a pain to manually analyze hundreds and thousands of open-ended text. Manual analysis of so much data is time and labor intensive. On top of that, your analysis may be exposed to human-induced errors. Long story short, manual analysis is not scalable enough to be worth your while. Hang on! I have the perfect solution.

So, in the previous section I mentioned SmartReader. This SaaS tool combines state-of-the-art NLP techniques and eats through the messiest of open-ended text data you can throw at it in a manner of minutes. SmartReader can find the sentiment and emotion behind a textual matter. It can also extract important keywords and categorize your data into themes after analyzing each line of your text. What’s more? The tool operates directly on your spreadsheet.

We carried out an analysis of Amazon reviews. Defining key themes. Click here to read our full report.

I mean imagine going through over 100,000 reviews on a e-commerce platform such as Amazon. You will require a separate team just for this task. On the other hand SmartReader can go through them like knife goes through butter.

What are some examples of real-world consumer analytics?

The true power of SmartReader is that it can communicate exactly what your consumer’s are thinking, why they are thinking along those lines and most importantly how can you make your consumer’s happiest. SmartReader has a number of success stories attached to its name.

This tool has improved not only consumer-facing value-providers but also academic institutions.

We recently carried out a conceptual case study analyzing hotel reviews to generate some very interesting insights. Click here to access the complete case study.

What is the key to accurately understanding the voice of your consumers?

Now, that we have talked about the gaps a purely NPS-based analysis leaves. Let’s together device a method that is better and more efficient. Net Promoter Score should not be disregarded, it is and probably will always be a very important metric.

I suggest that you use NPS in combination with NLP-based tools such as SmartReader.

Net Promoter Score or NPS should be used to take a quick snapshot of a brand’s overall health. This information should be acted upon to take quick decisions when an open-ended review is not on hand.

On the other hand, I suggest that your Net Promoter Score or NPS survey should have a scope of an open-ended response and all these responses should be analyzed using tools like SmartReader. Such a diverse analysis will lead to detailed results that can lead you to targeted improvements and shape efficient re-targeting strategies.

We hope you liked the article. Please Sign Up for a free ParallelDots account to start your AI journey now. Create your own classification model with SmartReader and discover interesting insights from your customers’ voice. You can also check out free demos of ParallelDots AI APIs here.